There are many ways to classify food, but no matter what the classification is, the food we eat every day has the same origin and purpose, which is to sustain human life.
3. Quality and preservation
3.1. Food quality characteristics
For food, the system of product quality characteristics includes nutritional value, sensory value and hygiene.
Nutritional value:
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Pre-tax Profit of Bidv Tien Giang in the Period 2011-2015
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At that time, the Branch had to set aside a provision for credit risks, which reduced the Branch's income.
Chart 2.2. Pre-tax profit of BIDV Tien Giang in the period 2011-2015
Unit: Billion VND
140
120
100
80
60
40
20
0
63.3
80.34
89.29
110.08
131.99
2011 2012 2013 2014 2015
Profit before tax
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
However, through chart 2.2, it can be seen that BIDV Tien Giang's profit is still increasing continuously, and its operating efficiency is currently leaking. This is a contribution of non-credit services, and this service segment will be increasingly focused on growth by BIDV Tien Giang to ensure the highest profit safety because credit activities have many potential risks. At the same time, focusing on developing non-credit services is consistent with one of the contents of restructuring the financial activities of credit institutions in the project "Restructuring the system of credit institutions in the period 2011-2015" approved by the Prime Minister in Decision No. 254/QD-TTg dated March 1, 2012 [14]: "Gradually shifting the business model of commercial banks towards reducing dependence on credit activities and increasing income from non-credit services".
2.2. Current status of non-credit service development at BIDV Tien Giang.
2.2.1. BIDV Tien Giang has deployed the development of non-credit services in recent times.
Along with the development of the Head Office, BIDV Tien Giang's products and services are constantly improved and deployed in a diverse manner to ensure provision for many different customer groups in the area: individual customers, corporate customers, and financial institutions. Typical services are as follows: Payment services, treasury services, guarantee services, card services, trade finance, other services: Western Union, insurance commissions, consulting services, foreign exchange derivatives trading, e-banking services,...
2.2.1.1. Payment services:
In accordance with the Prime Minister's Project to promote non-cash payments in Vietnam [15], banks in Tien Giang province have continuously developed payment services to reduce customers' cash usage habits through card services and electronic banking services such as: salary payment through accounts, focusing on developing card acceptance points, developing multi-purpose cards, paying social insurance by transfer, paying bills through banks, etc.
Chart 2.3. Net income from payment services in the period 2011-2015
Unit: Million VND
6000
5000
4000
3000
2000
1000
0
3922 4065
4720 5084 5324
2011 2012 2013 2014 2015
Net income from payment services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Along with the technological development of the entire system, BIDV Tien Giang has a payment system with a fairly stable transaction processing speed, bringing many conveniences to customers. The results of observing chart 2.3 show that the income from payment services that the Branch has achieved has grown over the years but the speed is not high and the products are not outstanding compared to other banks. Domestic payment products such as: Online bill payment, electricity bills, water bills, insurance premiums, cable TV bills, telecommunications fees, airline tickets, etc. bring many conveniences to customers. Regarding international payment, this is an indispensable activity for foreign economic activities, BIDV Tien Giang is providing international payment methods for small enterprises producing agriculture, aquatic food and seafood that have credit relationships with banks in industrial parks in Tien Giang province such as: money transfer, collection, L/C payment.
2.2.1.2. Treasury services:
BIDV Tien Giang always focuses on ensuring treasury safety and currency security, always complies with legal regulations, and minimizes risks in operations such as: counting and collecting money from customers, receiving and delivering internal transactions, collecting from the State Bank (SBV) or other credit institutions, receiving ATM funds, bundling money, etc. BIDV Tien Giang's treasury service management department is always fully equipped with modern machinery and equipment such as: money transport vehicles, fire prevention tools, money counters, money detectors, magnifying glasses, etc. to ensure absolute safety in treasury operations, immediately identifying real and fake money and other risks that may affect people and assets of the bank and customers. In addition, implementing regulation 2480/QC dated October 28, 2008 between the State Bank of Tien Giang province and the Provincial Police on coordination in the fight against counterfeit money, in the 3-year review of implementation, BIDV Tien Giang discovered, seized and submitted to the State Bank of Tien Giang province 475 banknotes of various denominations and was commended by the Provincial Police and the State Bank of Tien Giang province [17].
Chart 2.4. Net income from treasury services in the period 2011-2015
Unit: Million VND
350
300
250
200
150
100
50
0
105 122
309 289 279
2011 2012 2013 2014 2015
Net income from treasury services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
However, as shown in Figure 2.4, income from treasury operations is not high and fluctuates. Specifically, in the period 2011-2013, net income increased and increased most sharply in 2013, then in the period 2013-2015, there was a downward trend. This fluctuation is due to the fact that fees collected from treasury services are often very low and can even be waived to attract customers to use other services.
2.2.1.3. Guarantee and trade finance services:
BIDV Tien Giang, thanks to the advantages of the province and the favorable location of the Branch, has continuously focused on developing income from guarantee services and trade finance.
Chart 2.5. Net income from guarantee and trade finance services in the period 2011-2015
Unit: Million VND
14000
12000
10000
8000
6000
4000
2000
0
5193 5695
2742 3420
8889
3992
11604 12206
5143 5312
2011 2012 2013 2014 2015
Net income from guarantee services Net income from Trade Finance
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Through chart 2.5, we can see that BIDV Tien Giang's income from guarantee services and trade finance has grown over the years. The reason is: Among BIDV Tien Giang's corporate customers, the construction industry is the industry with the highest proportion of customers after the trading industry, this is a group of customers with potential to develop guarantee services. The second group of customers is corporate customers in the fields of agricultural production, livestock and seafood processing with high import and export turnover in the area.
are the target of trade finance development. In addition, BIDV Tien Giang also focuses on continuously developing these customer groups to increase revenue for many other products and services in the future.
2.2.1.4. Card and POS services:
As a service that BIDV Tien Giang has recently developed strongly, it can be said that this is a very potential market and has the ability to develop even more strongly in the future. Card services with outstanding advantages such as fast payment time, wide payment range, quite safe, effective and suitable for the integration trend and the Project to promote non-cash payments in Vietnam. Cards have become a modern and popular payment tool. BIDV Tien Giang early identified that developing card services is to expand the market to people in society, create capital mobilized from card-opened accounts, contribute to diversifying banking activities, enhance the image of the bank, bring the BIDV Tien Giang brand to people as quickly and easily as possible. BIDV Tien Giang is currently providing card types such as: credit cards (BIDV MasterCard Platinum, BIDV Visa Gold Precious, BIDV Visa Manchester United, BIDV Visa Classic), international debit cards (BIDV Ready Card, BIDV Manu Debit Card), domestic debit cards (BIDV Harmony Card, BIDV eTrans Card, BIDV Moving Card, BIDV-Lingo Co-branded Card, BIDV-Co.opmart Co-branded Card). These cards can be paid via POS/EDC or on the ATM system. In addition, with debit cards, customers can not only withdraw money via ATMs but also perform utilities such as mobile top-up, online payment, money transfer,... through electronic banking services.
In order to attract customers with card services, BIDV Tien Giang has continuously increased the installation of ATMs. As of December 31, 2015, BIDV Tien Giang has 23 ATMs combined with 7 ATMs in the same system of BIDV My Tho, so the number of ATMs is quite large, especially in the center of My Tho City, but is not yet fully present in the districts. Basic services on ATMs such as withdrawing money, checking balances, printing short statements,... BIDV ATMs accept cards from banks in the system.
Banknetvn and Smartlink, cards branded by international card organizations Union Pay (CUP), VISA, MasterCard and cards of banks in the Asian Payment Network. From here, cardholders can make bill payments for themselves or others at ATMs, by simply entering the subscriber number or customer code, booking code that service providers notify and make bill payments.
Chart 2.6. Net income from card services in the period 2011-2015
Unit: Million VND
3500
3000
2500
2000
1500
1000
500
0
687
1023
1547
2267
3104
2011 2012 2013 2014 2015
Net income from card services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Through chart 2.6, it can be seen that BIDV Tien Giang's card service income is constantly growing because the Branch focuses on developing businesses operating in industrial parks, which are the source of customers for salary payment products, ATMs, BSMS. Specifically, there are companies such as Freeview, Quang Viet, Dai Thanh, which are businesses with a large number of card openings at the Branch, contributing to the increase in card service fees [25].
Table 2.6. Number of ATMs and POS machines in 2015 of some banks in Tien Giang area.
Unit: Machine
STT
Bank name
Number of ATMs
Cumulative number of ATM cards
POS machine
1
BIDV Tien Giang
23
97,095
22
2
BIDV My Tho
7
21,325
0
3
Agribank Tien Giang
29
115,743
77
4
Vietinbank Tien Giang
16
100,052
54
5
Dong A Tien Giang
26
97,536
11
6
Sacombank Tien Giang
24
88,513
27
7
Vietcombank Tien Giang
15
61,607
96
8
Vietinbank - Tay Tien Giang Branch
6
46,042
38
(Source: 2015 Banking Activity Data Report of the General and Internal Control Department of the Provincial State Bank [21])
Through table 2.6, the author finds that the number of ATMs of BIDV Tien Giang is not much, ranking fourth after Agribank Tien Giang, Dong A Tien Giang, Sacombank Tien Giang. The number of POS machines of BIDV Tien Giang is very small, only higher than Dong A Tien Giang and BIDV My Tho in the initial stages of merging the BIDV system. Besides, BIDV Tien Giang has a high number of cards increasing over the years (table 2.7) but the cumulative number of cards issued up to December 31, 2015 is still relatively low compared to Agribank, Vietcombank, Dong A (table 2.6).
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Food safety and commodities Restaurant Management - Dalat College of Technology - 2 -
Current situation and solutions to improve the efficiency of food service business at the Restaurant of Song Hong Thu Do Joint Stock Company in Vinh Yen city, Vinh Phuc province - 2
This is the most important characteristic of food quality. It indicates the ability to provide nutrients, assimilation and energy to the body.
Nutritional value depends on 3 factors:

- Chemical composition: is a factor that determines the nutritional value of food. If food contains beneficial ingredients for the body such as protein, glucid, lipid, vitamin... it has 3 effects on the body as follows:
+ Provide heat
+Maintain growth and replenish cells
+ Regulates metabolism and protects body tissues
- Digestibility: is the ratio of food absorbed by the body compared to the amount of food entering the body. Thus, the digestibility of food characterizes the level of food use by the body:
Digestibility % = Amount of food absorbed by the body
Amount of food entering the body
𝑥 100
Digestibility depends on:
+ Type of food: if food contains a lot of carbohydrates such as glucose, fructose, it is easier to digest than sucrose, maltose, starch... Food containing a lot of simple proteins is easier to digest than complex proteins such as sugar water, eggs, milk, it is easier to digest than vegetables, meat, fish, peanuts, soybeans,...
+Status and preparation method: well-cooked, finely chopped food is easier to digest than large, rare-cooked food. When cooked, food with a delicious taste and attractive appearance will be better digested.
+ Physiological state of the eater: the same type of food will have a higher digestibility for young people and healthy people, and a lower digestibility for sick people and the elderly...
- Heat generation: is the amount of heat generated by 100g of product, calculated in Kcal
The human body needs heat to balance body temperature, maintain life and activities. That heat is provided by fat, carbohydrates, and proteins in food. 1g of carbohydrates provides 4.1 Kcal
1g of protein provides 4.1 Kcal 1g of lipid provides 9.3 Kcal
For example: fresh cow's milk has 3.9% P, 4.8% G, 4.4% L
Heat generation: = (3.9 x 4.1) + (4.8 x 4.1) + (4.4 x 9.3) = 76.59Kcal
Actual heat production = Theoretical heat production x Digestion
= 76.59 x 96%
The higher the calorific value, the higher the nutritional value.
Perceptual value
Sensory requirements such as color, taste, state, shape...
These requirements represent the composition of the product. If the sensory requirements change, the composition of the food also changes and therefore the quality of the food also changes.
For example, good quality fish sauce has a characteristic color (brown to straw yellow) and a characteristic aroma. If the fish sauce turns dark green and has a foul odor, it means that the composition of the fish sauce has changed (amino acids are broken down), and the quality of the fish sauce is poor and may be completely spoiled.
Non-toxicity
According to experts from the Food and Health Organization (FAO/WHO), "Food safety is the assurance that food does not harm the health and life of consumers; ensures that food is not spoiled, does not contain physical, chemical, biological agents, or impurities exceeding the permitted limits; is not the product of diseased animals or plants that can harm the health of consumers"
Food poisoning agents include biological agents, chemical agents and toxins present in food.
Biological agents that cause food poisoning include: bacteria, viruses, molds, and parasites.
- Bacteria are the most common cause of acute food poisoning. For example, Salmonella, Staphylococcus areus, Clostridium botulinum (botulism), and Escherichia coli causing diarrhea are common poisoning phenomena.
- Virus: Rotavirus causes diarrhea, the habit of eating undercooked mollusks such as oysters, mussels, and clams is the main cause of Rotavirus poisoning.
- Mold: growing in the food environment has the ability to produce dangerous mycotoxins, especially aflatoxin produced in corn, beans, especially peanuts, due to the fungi aspegillus flavus and a parasiticus, which can cause liver cancer.
- Parasites: such as amoeba, Entamoeba histolytical in food causes bloody stools. Most cases of worm infection are due to poor personal hygiene, undercooked food or raw vegetables that are not washed. For example, tapeworm larvae in beef, pork, rice, freshwater fish...
Chemical agents that cause food poisoning include pesticides, heavy metals: arsenic, mercury, lead... and some food additives such as auramin, scarlet red, sudan III, rhodamine.
Toxins present in food such as solanine found in potato sprouts, cyanogen glucoside found in cassava and some poisonous mushrooms.
The non-toxicity of food is expressed by food hygiene and safety standards. These standards stipulate that food products do not contain or contain at acceptable levels agents harmful to the health of users such as heavy metal salts, toxins, pathogenic microorganisms, and also regulate the use of colorants, aromas, flavoring agents, food shelf life, and toxicity.
Food hygiene standards are usually set by health authorities.
3.2. How to confirm food quality
The quality of food is determined by a system of sensory and physical-chemical indicators. Physical-chemical indicators. These indicators are determined by sensory methods and experimental methods.
Sensory method
Determining food quality by sensory organs (smell, touch, taste, sight, smell) is called sensory method.
By sensory methods, it is possible to determine food quality criteria such as: shape, color, surface state, smell, taste and hardness of food.
- Taste and smell are two important criteria of food.
The taste of food is determined by the tongue. To determine taste, people distinguish between four basic tastes: bitter, sour, salty, sweet. Taste determination is carried out at temperatures specified in the standard, otherwise it is carried out at temperatures of 15-220 o C. When the temperature increases from 10-20 o C, the sensitivity to taste doubles, but when the temperature increases
to 35-40 o C, at 50 o C it decreases sharply and then disappears completely. Sensitivity to salty taste is best at 18-20 o C and to bitter taste is at 10 o C. When testing taste, do not taste for too long in the mouth and the time should not exceed 1 minute.
The smell of food is determined by the nose. When determining the smell of food, people distinguish the inherent smell of food from foreign smells such as the burnt smell caused by spoiled fat, the foul smell caused by mold growth, and the putrid smell caused by protein decomposition. Good food has a characteristic smell, the smell of food changes due to changes in quality.
To perceive a smell, the nose must inhale at least 50cm3 of air containing the odorant.
Because the sense of smell is retained in the nose, when testing multiple samples, preliminary classification is required, and intermittent testing should be performed, and clean air should be breathed in between tests.
- Hearing and touch have very limited effects when it comes to sensory evaluation of food quality indicators.
Advantages and disadvantages: Fast results, mobile, simple and inexpensive. However, the main disadvantage is that the assessment results depend on the subjectivity, experience and skills of the examiner, so the results are not highly accurate.
Experimental method
Is a method of determining the composition, structure, properties, and quality of goods by machinery or chemicals (indicators of the nature of food).
- Experimental methods include:
+ Microbiological analysis method to determine mold, yeast, bacteria
bacteria
+ Chemical analysis method to determine toxins in food
poisoning consumers, chemical components of food.
+ Advantages and disadvantages: this method often gives objective and accurate results but is costly because it requires equipment, machinery or chemicals and after testing the sample is often completely or partially destroyed.
Basis for food quality testing
- Based on standard documents: TCVN, TCN, TC are the bases for checking the quality of goods. Compare with those standards to conclude about the quality of goods in a scientific and grounded manner, ensuring consistency in quality management.
- Based on the technical process. Each product has a technical production process, the quality inspector uses that as a basis to find out the reason why the product does not meet quality standards or is damaged.
- Based on economic contracts: in economic contracts there are contracts for the purchase and sale of goods.
- Based on product samples: to offer products to customers, businesses must use product samples to introduce and advertise the shipment.
- Based on current regulations on quality: In each period, the state may have new regulations on the issue of goods quality inspection, so it is necessary to base on current regulations on quality to inspect quality.
3.3. Factors affecting food quality Physical factors such as air, temperature, humidity and light
- Air in direct contact with food causes some components of the food to
Products such as fats, pigments, and vitamins are oxidized. Air oxygen promotes the activity of
the action of microorganisms and insects that destroy food.
- Food moisture
When storing foods that contain a lot of water, that water is easily lost; conversely, dry foods easily absorb moisture from the air.
- Air humidity
o Air always contains water vapor and the level of dryness and humidity of the air is characterized by relative humidity.
o Relative humidity of air is the ratio between absolute humidity and maximum humidity of air at the same temperature and expressed as %.
If the absolute humidity of the air is denoted by a (g/m 3 )
The maximum humidity of air is denoted by A (g/m 3 ) at the same temperature as a, then the relative humidity of air is φ = ! 100%
!
Relative humidity of the air will directly affect the quality of food during storage.
o When the relative humidity of the air is high, food will absorb moisture, the moisture content in the goods will increase, reducing the quality, creating favorable conditions for mold to grow (tea, tobacco get moldy, sugar leaks, rice flour gets moldy...)
o When the air humidity is low, the goods will release moisture, the humidity in the goods decreases, causing the quality of the goods to change: vegetables and fruits will dry out, green fruits will not ripen...
So for foods containing a lot of water such as vegetables, fruits, meat, fish need to be preserved in
high relative air humidity (80-90%) to avoid drying out.
Foods that contain little water such as sugar, rice, flour, wood ear mushrooms, shiitake mushrooms, etc. need to be stored in conditions of low relative humidity (70-75%).
- Air temperature
Air temperature increases or decreases affect the quality of food because the activity of chemical and biochemical processes and the growth of microorganisms depend on the temperature of the environment.
Temperature changes will lead to changes in relative humidity of the air, so the humidity of the food will also change and change the quality of the food.
Temperature also directly affects the change in state of food (solid, liquid), the absorption and release of water vapor and other gases.
Therefore, most foods need to be stored at low and relatively low temperatures.
- Light has the effect of promoting many processes that occur in food and causing food to spoil, such as rancid oil, cheese and sausages changing color and flavor.
Chemical processes
Chemical processes occur that change the quality of food such as oxidation of fats and fatty products, vitamin decomposition and some changes in canned foods such as color and flavor of food.
Biochemical processes
Can occur in food under the influence of enzymes available in food and enzymes secreted by microorganisms.
Under the influence of enzymes, food can undergo autolysis and respiration.
- Self-resolving:
Autolysis is the decomposition of food components under the action of enzymes present in cells, changing the taste and hardness of food.
o Protein breakdown: according to the following diagram under the influence of protease enzyme
Proteins ! peptones ! polypeptides ! amino acids ! ketoacids, amine compounds, NH 3 , CO 2 and foul-smelling substances (indon, skatone, mercaptan)
o Fat breakdown:
Under the action of lipase enzyme, fat is broken down into fatty acids and glycerol. If the decomposition process continues, the final products will be CO 2 and H 2 O.
Autolysis has a great influence on the quality of food such as the quality of cooked meat and fish, the ripeness of flour, the formation of aroma of beer, cigarettes, tea, etc.
- Respiration
Some foods such as vegetables, fruits, seeds, and eggs are living organisms and continue to respire during storage.
The nature of respiration is the process of oxidizing organic compounds (mainly carbohydrates) to provide heat for cell life.
There are two types of respiration:
o Aerobic respiration: occurs when there is enough oxygen in the air, organic matter is completely oxidized to the final products of carbon dioxide, water vapor and heat.
o Anaerobic respiration: occurs when there is a lack or absence of oxygen in the air, organic matter is not completely oxidized but forms intermediate products and releases less energy than aerobic respiration.
The intensity of respiration is expressed by the amount of carbon dioxide released from a unit of product in a unit of time during the respiration process. Factors affecting the intensity of respiration.
o Temperature: within a certain range, as temperature increases, respiratory intensity increases. Respiration intensity is strongest at 45-50 o C, at higher temperatures, respiratory intensity gradually decreases.
o The higher the product humidity, the stronger the respiration.
o Light: light stimulates the respiratory process.
The respiration process reduces the amount of nutrients; changes the composition of the air; increases the temperature and humidity of the environment; changes the taste of the product; if the alcohol content exceeds 0.3%, it causes the cells of vegetables and fruits to rot.
To limit the effects of respiration, the temperature and humidity of food can be lowered during storage.
- Germination:
Sprouting is characteristic of some foods such as vegetables, fruits, and seeds during storage.
For example, when potatoes sprout, the starch is lost and solanine accumulates, which is harmful to the body. Therefore, when processing potatoes, all sprouts must be removed. When seeds sprout, the starch loses its ability to gelatinize, and the processed product becomes tough, so it should be stored at low temperatures to limit germination.
Microbial processes
Microbial processes such as fermentation, putrefaction, and mold that occur in food during storage under the influence of microorganisms reduce quality and lead to complete food spoilage.
Microbial processes include:
- Fermentation
Fermentation is the anaerobic decomposition of carbohydrates under the influence of enzymes secreted by microorganisms. For example, alcoholic fermentation, lactic fermentation, butyric fermentation.
o Alcoholic fermentation often occurs in foods that contain a lot of carbohydrates and are moist. At that time, starch turns into sugar and then turns into alcohol under the influence of microorganisms, causing some grains and vegetables to spoil. The suitable temperature for fermentation is 30-35 o C
o Lactic fermentation produces lactic acid which commonly occurs in milk and dairy products: vegetables, bread, making these foods sour and possibly spoiled.
o Butyric fermentation produces butyric acid, which causes vegetables to rot, pickles to become rancid, butter, milk, cheese to become rancid, and canned foods to swell.
o Acetic fermentation occurs due to acetic bacteria on the surface of foods.
alcoholic drink
When preserving wine and beer, acetic fermentation will sour and reduce the quality of wine and beer. Therefore, during the preservation process, it is necessary to pay attention to fermentation to maintain food quality.
- Rotting
It is the process of deep decomposition of protein that creates toxic and unpleasant-smelling substances such as indon, scaton, mercaptan... Foods that often rot are foods that contain a lot of protein and water (such as meat, fish, eggs, milk) and will lose their food value and can no longer be used.
- Mold
Because the fungus that appears on the surface of food is often white, green, yellow, brown, or black, it reduces the quality of the food and creates favorable conditions for rotting bacteria to thrive, making the food unusable.
- Food spoilage by insects and rats
Such as destroying rice, flour, dried vegetables and fruits, causing loss of quantity and reducing the quality of food during storage.
- The impact of packaging and packaging materials
Packaging and packaging materials have the effect of preventing loss of quantity, maintaining quality, avoiding the effects of mechanical impacts, ensuring necessary hygiene conditions, facilitating transportation and storage. Each type of food needs to be contained in separate packaging. For grease, it must be stored in waterproof packaging, canned foods need to be sealed, vegetables and fruits during storage still undergo biochemical processes and need to be kept in ventilated packaging.



![Pre-tax Profit of Bidv Tien Giang in the Period 2011-2015
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At that time, the Branch had to set aside a provision for credit risks, which reduced the Branchs income.
Chart 2.2. Pre-tax profit of BIDV Tien Giang in the period 2011-2015
Unit: Billion VND
140
120
100
80
60
40
20
0
63.3
80.34
89.29
110.08
131.99
2011 2012 2013 2014 2015
Profit before tax
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
However, through chart 2.2, it can be seen that BIDV Tien Giangs profit is still increasing continuously, and its operating efficiency is currently leaking. This is a contribution of non-credit services, and this service segment will be increasingly focused on growth by BIDV Tien Giang to ensure the highest profit safety because credit activities have many potential risks. At the same time, focusing on developing non-credit services is consistent with one of the contents of restructuring the financial activities of credit institutions in the project Restructuring the system of credit institutions in the period 2011-2015 approved by the Prime Minister in Decision No. 254/QD-TTg dated March 1, 2012 [14]: Gradually shifting the business model of commercial banks towards reducing dependence on credit activities and increasing income from non-credit services.
2.2. Current status of non-credit service development at BIDV Tien Giang.
2.2.1. BIDV Tien Giang has deployed the development of non-credit services in recent times.
Along with the development of the Head Office, BIDV Tien Giangs products and services are constantly improved and deployed in a diverse manner to ensure provision for many different customer groups in the area: individual customers, corporate customers, and financial institutions. Typical services are as follows: Payment services, treasury services, guarantee services, card services, trade finance, other services: Western Union, insurance commissions, consulting services, foreign exchange derivatives trading, e-banking services,...
2.2.1.1. Payment services:
In accordance with the Prime Ministers Project to promote non-cash payments in Vietnam [15], banks in Tien Giang province have continuously developed payment services to reduce customers cash usage habits through card services and electronic banking services such as: salary payment through accounts, focusing on developing card acceptance points, developing multi-purpose cards, paying social insurance by transfer, paying bills through banks, etc.
Chart 2.3. Net income from payment services in the period 2011-2015
Unit: Million VND
6000
5000
4000
3000
2000
1000
0
3922 4065
4720 5084 5324
2011 2012 2013 2014 2015
Net income from payment services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Along with the technological development of the entire system, BIDV Tien Giang has a payment system with a fairly stable transaction processing speed, bringing many conveniences to customers. The results of observing chart 2.3 show that the income from payment services that the Branch has achieved has grown over the years but the speed is not high and the products are not outstanding compared to other banks. Domestic payment products such as: Online bill payment, electricity bills, water bills, insurance premiums, cable TV bills, telecommunications fees, airline tickets, etc. bring many conveniences to customers. Regarding international payment, this is an indispensable activity for foreign economic activities, BIDV Tien Giang is providing international payment methods for small enterprises producing agriculture, aquatic food and seafood that have credit relationships with banks in industrial parks in Tien Giang province such as: money transfer, collection, L/C payment.
2.2.1.2. Treasury services:
BIDV Tien Giang always focuses on ensuring treasury safety and currency security, always complies with legal regulations, and minimizes risks in operations such as: counting and collecting money from customers, receiving and delivering internal transactions, collecting from the State Bank (SBV) or other credit institutions, receiving ATM funds, bundling money, etc. BIDV Tien Giangs treasury service management department is always fully equipped with modern machinery and equipment such as: money transport vehicles, fire prevention tools, money counters, money detectors, magnifying glasses, etc. to ensure absolute safety in treasury operations, immediately identifying real and fake money and other risks that may affect people and assets of the bank and customers. In addition, implementing regulation 2480/QC dated October 28, 2008 between the State Bank of Tien Giang province and the Provincial Police on coordination in the fight against counterfeit money, in the 3-year review of implementation, BIDV Tien Giang discovered, seized and submitted to the State Bank of Tien Giang province 475 banknotes of various denominations and was commended by the Provincial Police and the State Bank of Tien Giang province [17].
Chart 2.4. Net income from treasury services in the period 2011-2015
Unit: Million VND
350
300
250
200
150
100
50
0
105 122
309 289 279
2011 2012 2013 2014 2015
Net income from treasury services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
However, as shown in Figure 2.4, income from treasury operations is not high and fluctuates. Specifically, in the period 2011-2013, net income increased and increased most sharply in 2013, then in the period 2013-2015, there was a downward trend. This fluctuation is due to the fact that fees collected from treasury services are often very low and can even be waived to attract customers to use other services.
2.2.1.3. Guarantee and trade finance services:
BIDV Tien Giang, thanks to the advantages of the province and the favorable location of the Branch, has continuously focused on developing income from guarantee services and trade finance.
Chart 2.5. Net income from guarantee and trade finance services in the period 2011-2015
Unit: Million VND
14000
12000
10000
8000
6000
4000
2000
0
5193 5695
2742 3420
8889
3992
11604 12206
5143 5312
2011 2012 2013 2014 2015
Net income from guarantee services Net income from Trade Finance
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Through chart 2.5, we can see that BIDV Tien Giangs income from guarantee services and trade finance has grown over the years. The reason is: Among BIDV Tien Giangs corporate customers, the construction industry is the industry with the highest proportion of customers after the trading industry, this is a group of customers with potential to develop guarantee services. The second group of customers is corporate customers in the fields of agricultural production, livestock and seafood processing with high import and export turnover in the area.
are the target of trade finance development. In addition, BIDV Tien Giang also focuses on continuously developing these customer groups to increase revenue for many other products and services in the future.
2.2.1.4. Card and POS services:
As a service that BIDV Tien Giang has recently developed strongly, it can be said that this is a very potential market and has the ability to develop even more strongly in the future. Card services with outstanding advantages such as fast payment time, wide payment range, quite safe, effective and suitable for the integration trend and the Project to promote non-cash payments in Vietnam. Cards have become a modern and popular payment tool. BIDV Tien Giang early identified that developing card services is to expand the market to people in society, create capital mobilized from card-opened accounts, contribute to diversifying banking activities, enhance the image of the bank, bring the BIDV Tien Giang brand to people as quickly and easily as possible. BIDV Tien Giang is currently providing card types such as: credit cards (BIDV MasterCard Platinum, BIDV Visa Gold Precious, BIDV Visa Manchester United, BIDV Visa Classic), international debit cards (BIDV Ready Card, BIDV Manu Debit Card), domestic debit cards (BIDV Harmony Card, BIDV eTrans Card, BIDV Moving Card, BIDV-Lingo Co-branded Card, BIDV-Co.opmart Co-branded Card). These cards can be paid via POS/EDC or on the ATM system. In addition, with debit cards, customers can not only withdraw money via ATMs but also perform utilities such as mobile top-up, online payment, money transfer,... through electronic banking services.
In order to attract customers with card services, BIDV Tien Giang has continuously increased the installation of ATMs. As of December 31, 2015, BIDV Tien Giang has 23 ATMs combined with 7 ATMs in the same system of BIDV My Tho, so the number of ATMs is quite large, especially in the center of My Tho City, but is not yet fully present in the districts. Basic services on ATMs such as withdrawing money, checking balances, printing short statements,... BIDV ATMs accept cards from banks in the system.
Banknetvn and Smartlink, cards branded by international card organizations Union Pay (CUP), VISA, MasterCard and cards of banks in the Asian Payment Network. From here, cardholders can make bill payments for themselves or others at ATMs, by simply entering the subscriber number or customer code, booking code that service providers notify and make bill payments.
Chart 2.6. Net income from card services in the period 2011-2015
Unit: Million VND
3500
3000
2500
2000
1500
1000
500
0
687
1023
1547
2267
3104
2011 2012 2013 2014 2015
Net income from card services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Through chart 2.6, it can be seen that BIDV Tien Giangs card service income is constantly growing because the Branch focuses on developing businesses operating in industrial parks, which are the source of customers for salary payment products, ATMs, BSMS. Specifically, there are companies such as Freeview, Quang Viet, Dai Thanh, which are businesses with a large number of card openings at the Branch, contributing to the increase in card service fees [25].
Table 2.6. Number of ATMs and POS machines in 2015 of some banks in Tien Giang area.
Unit: Machine
STT
Bank name
Number of ATMs
Cumulative number of ATM cards
POS machine
1
BIDV Tien Giang
23
97,095
22
2
BIDV My Tho
7
21,325
0
3
Agribank Tien Giang
29
115,743
77
4
Vietinbank Tien Giang
16
100,052
54
5
Dong A Tien Giang
26
97,536
11
6
Sacombank Tien Giang
24
88,513
27
7
Vietcombank Tien Giang
15
61,607
96
8
Vietinbank - Tay Tien Giang Branch
6
46,042
38
(Source: 2015 Banking Activity Data Report of the General and Internal Control Department of the Provincial State Bank [21])
Through table 2.6, the author finds that the number of ATMs of BIDV Tien Giang is not much, ranking fourth after Agribank Tien Giang, Dong A Tien Giang, Sacombank Tien Giang. The number of POS machines of BIDV Tien Giang is very small, only higher than Dong A Tien Giang and BIDV My Tho in the initial stages of merging the BIDV system. Besides, BIDV Tien Giang has a high number of cards increasing over the years (table 2.7) but the cumulative number of cards issued up to December 31, 2015 is still relatively low compared to Agribank, Vietcombank, Dong A (table 2.6).
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